INTEL CORP (INTC) SEC Filing 10-K Annual report for the fiscal year ending Saturday, December 31, 2016
2200 Mission College Blvd.
Santa Clara, CA 95054-1549
Intel Reports Record Full-Year Revenue of $59.4 Billion;
Reports Record Quarterly Revenue of $16.4 Billion
Revenue growth in 2016 driven by strength across the business including full-year revenue growth in Client Computing, Data Center, and Internet of Things
Record annual cash flow from operations of $21.8 billion
Solid earnings with GAAP net income of $10.3 billion; non-GAAP net income of $13.2 billion
SANTA CLARA, Calif., January 26, 2017 -- Intel Corporation today reported full-year revenue of $59.4 billion, operating income of $12.9 billion, net income of $10.3 billion and EPS of $2.12. Intel reported non-GAAP revenue of $59.5 billion, operating income of $16.5 billion, net income of $13.2 billion, and EPS of $2.72. The company generated approximately $21.8 billion in cash from operations, paid dividends of $4.9 billion and used $2.6 billion to repurchase 81 million shares of stock.
For the fourth quarter, Intel posted revenue of $16.4 billion, operating income of $4.5 billion, net income of $3.6 billion and EPS of 73 cents. Intel reported non-GAAP operating income of $4.9 billion, net income of $3.9 billion, and EPS of 79 cents. The company generated approximately $8.2 billion in cash from operations, paid dividends of $1.2 billion, and used $533 million to repurchase 15 million shares of stock.
“The fourth quarter was a terrific finish to a record-setting and transformative year for Intel. In 2016, we took important steps to accelerate our strategy and refocus our resources while also launching exciting new products, successfully integrating Altera, and investing in growth opportunities,” said Brian Krzanich, Intel CEO. “I’m pleased with our 2016 performance and confident in our future.”
Full-Year 2016 Business Unit Trends*
Client Computing Group revenue of $32.9 billion, up 2 percent from 2015
Data Center Group revenue of $17.2 billion, up 8 percent from 2015
Internet of Things Group revenue of $2.6 billion, up 15 percent from 2015
Non-Volatile Memory Solution Group revenue of $2.6 billion, down 1 percent from 2015
Intel Security Group revenue of $2.2 billion, up 9 percent from 2015
Programmable Solutions Group revenue of $1.7 billion
* The first quarter of 2016 had 14 weeks of business versus the typical 13 weeks, as the company realigned its fiscal year with the calendar year.
Q4 Business Unit Trends
Client Computing Group revenue of $9.1 billion, up 4 percent year-over-year
Data Center Group revenue of $4.7 billion, up 8 percent year-over-year
Internet of Things Group revenue of $726 million, up 16 percent year-over-year
Non-Volatile Memory Solution Group revenue of $816 million, up 25 percent year-over-year
Intel Security Group revenue of $550 million, up 7 percent year-over-year
Programmable Solutions Group revenue $420 million
- more -
The following information was filed by INTEL CORP on Thursday, January 26, 2017 as an 8K 2.02 statement, which is a press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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- intc_10k_2017-02-17_102_292Financial - Earningsby $70 million in 2016 compared to 2015, driven by higher gross margin from IOTG revenue primarily due to higher IOTG platform unit sales and
- intc_10k_2017-02-17_45_244Financial - EarningsHigher gross margin from platform revenue
- intc_10k_2017-02-17_74_267Financial - EarningsHigher gross margin from CCG platform revenue
- intc_10k_2017-02-17_92_283Financial - EarningsHigher gross margin from DCG platform revenue
- intc_10k_2017-02-17_95_286Financial - EarningsHigher gross margin from DCG platform revenue
- intc_10k_2017-02-17_64_257Revenue - ProductHigher mobile platform revenue, primarily from reduction of cash consideration to our customers
- intc_10k_2017-02-17_44_59Financial - EarningsOur overall gross margin percentage was 60.9% in 2016, down from 62.6% in 2015, and down from 63.7% in 2014.
- intc_10k_2017-02-17_13_226Financial - EarningsGross margin dollars were $36.2 billion, up $1.5 billion
- intc_10k_2017-02-17_166_146Financial - Earnings$1.4 billion decrease in cash provided by operating activities was due to changes in working capital, adjustments for non-cash items, and lower net income.
- intc_10k_2017-02-17_78_271Financial - ExpenseLower factory start-up costs, primarily driven by the ramp of our 14nm process technology
- intc_10k_2017-02-17_51_250Financial - ExpenseLower factory start-up costs, primarily driven by the ramp of our 14nm process technology
- intc_10k_2017-02-17_124_115Financial - ExpenseThe increase was due to higher investment in our products primarily server, Internet of Things, and new devices as well as expenses of newly acquired entities and higher process development costs for our 10nm process technology.
- intc_10k_2017-02-17_173_153Revenue - ProductThis activity was partially offset by net available-for-sale activity which was cash flow neutral in 2015 compared to a source of cash in 2014 and higher investments in non-marketable equity investments during 2015.
- intc_10k_2017-02-17_41_55Revenue - ProductThe higher revenue was also driven by higher unit sales from our DCG platform and higher average selling prices from our notebook and desktop platforms.
- intc_10k_2017-02-17_138_311Financial - Shares / EquityAs of December 31, 2016, unrecognized share-based compensation costs and the weighted average periods over which the costs are expected to be recognized were as follows:
- intc_10k_2017-02-17_168_337Other - Otherincrease in cash used for investing activities in
- intc_10k_2017-02-17_87_87Revenue - ProductOur DCG platform revenue increased, primarily due to growth in the cloud service provider and communication service provider market segments.
- intc_10k_2017-02-17_79_272Financial - ExpenseLower production costs primarily on our 14nm products, treated as period charges in 2014
- intc_10k_2017-02-17_11_13Revenue - ProductWe achieved record revenue of $59.4 billion in 2016, up $4.0 billion, or 7%, from 2015.
- intc_10k_2017-02-17_77_270Financial - EarningsLower gross margin from CCG platform revenue
- intc_10k_2017-02-17_127_307Financial - ExpenseMG&A expenses decreased by $206 million in
- intc_10k_2017-02-17_195_350Financial - DividendWe believe we have sufficient financial resources to meet our business requirements in the next 12 months, including capital expenditures for worldwide manufacturing and assembly and test working capital requirements and potential dividends, common stock repurchases, acquisitions, and strategic investments.
- intc_10k_2017-02-17_144_141Financial - ExpenseWe recognized an interest and other, net loss in 2015 compared to a net gain in 2014 primarily due to higher interest expense, which resulted from the issuance of senior unsecured notes during 2015.
- intc_10k_2017-02-17_82_85Financial - ExpenseIn addition, DCG focuses on lowering the total cost of ownership on other specific workload-optimizations for the enterprise, cloud service providers, and communications service provider market segments.
- intc_10k_2017-02-17_147_319Financial - IncomeMost of the decrease in our effective tax rate in 2015 compared to 2014 was driven by one-time items, a higher proportion of our income from lower tax jurisdictions, and our decision to indefinitely reinvest certain prior years non-U.S. earnings, which positively impacted our effective income tax rate.
- intc_10k_2017-02-17_65_258Revenue - ProductLower desktop platform unit sales, down 6%
- intc_10k_2017-02-17_66_259Revenue - ProductLower desktop platform unit sales, down 16%
- intc_10k_2017-02-17_67_260Revenue - ProductLower notebook platform unit sales, down 9%
- intc_10k_2017-02-17_61_254Revenue - ProductHigher CCG non-platform revenue
- intc_10k_2017-02-17_88_279Revenue - ProductHigher DCG platform unit sales
- intc_10k_2017-02-17_89_280Revenue - ProductHigher DCG platform unit sales
- intc_10k_2017-02-17_19_26MA - OtherThis decrease was primarily driven by higher restructuring and other charges, higher spending, and higher amortization of acquisition-related intangibles.
- intc_10k_2017-02-17_160_332Other - OtherEffect of exchange rate fluctuations on cash and cash equivalents
- intc_10k_2017-02-17_58_77Financial - ExpenseWe also focus on lowering the total cost of ownership for businesses.
- intc_10k_2017-02-17_125_306Financial - ExpenseMG&A expenses increased by $467 million, or 6%, in
- intc_10k_2017-02-17_122_112Financial - ExpenseThe increase was driven by the addition of PSG expenses from the acquisition of Altera, higher investment, net of 2016 restructuring program savings, in strategically important areas such as servers, Internet of Things, new devices, and memory, as well as higher process development costs for our new 7nm process technology.
- intc_10k_2017-02-17_126_118Financial - ExpenseThis increase was primarily due to PSG expenses from the acquisition of Altera.
- intc_10k_2017-02-17_132_126Other - OtherWe estimate that the charges incurred to date as part of the 2016 restructuring program will result in net annual headcount savings of approximately $1.6 billion as we re-balance our workforce.
- intc_10k_2017-02-17_22_35Other - OtherTo accelerate our transformation, in Q2 2016, we announced the 2016 Restructuring Program, which is on track to reduce our headcount and generate savings.
- intc_10k_2017-02-17_7_12Other - OtherOverview of contractual obligations, contingent liabilities, commitments, and off-balance-sheet arrangements outstanding as of December 31, 2016, including expected payment schedule.
- intc_10k_2017-02-17_68_261Other - OtherHigher desktop platform average selling prices, up 6%
- intc_10k_2017-02-17_69_262Other - OtherHigher notebook platform average selling prices, up 2%
- intc_10k_2017-02-17_62_255Other - OtherHigher notebook platform average selling prices, up 2%
- intc_10k_2017-02-17_63_256Other - OtherHigher desktop platform average selling prices, up 2%
- intc_10k_2017-02-17_17_24Revenue - ProductR&D and MG&A were 35.6% of revenue in 2016, down approximately 1 point from 2015.
- intc_10k_2017-02-17_141_314Financial - Shares / EquityWe recognized higher net gains on equity investments in 2016 compared to 2015 primarily due to gains of $407 million related to sales of a portion of our interest in ASML.
- intc_10k_2017-02-17_130_123Other - OtherUnder this program, we are in the process of closing certain facilities and reducing headcount globally to align our operations with evolving business needs by investing in our growth businesses and improving efficiencies.
- intc_10k_2017-02-17_54_68Other - OtherIn combination, these enhancements can provide significant power savings and performance gains when compared to previous-generation processors.
- intc_10k_2017-02-17_181_161Other - OtherWe base our level of common stock repurchases on internal cash management decisions, and this level may fluctuate.
- intc_10k_2017-02-17_54_67Legal - OtherOur Tri-Gate transistor technology extends Moores Law, providing improved performance and energy efficiency.
- intc_10k_2017-02-17_167_148Financial - Cash FlowInvesting cash flows consist primarily of capital expenditures investment purchases, sales, maturities, and disposals and proceeds from divestitures and cash used for acquisitions.
- intc_10k_2017-02-17_182_167Financial - DividendThe dividend is payable on March 1, 2017 to stockholders of record on February 7, 2017.
- intc_10k_2017-02-17_19_25Financial - EarningsEarnings per share of $2.12 were down 21 cents, or 9% from a year ago.
- intc_10k_2017-02-17_132_129Legal - OtherWe are reallocating these savings to our growth segments, such as the data center and Internet of Things, and are continuing to invest in areas that extend our leadership in Moores Law and expand market opportunities in areas such as memory and autonomous driving.
- intc_10k_2017-02-17_22_36Legal - OtherWe are reallocating these savings to our growth segments, such as the data center and Internet of Things, and are continuing to invest in areas that extend our leadership in Moores Law and expand market opportunities in areas such as memory and autonomous driving.
- intc_10k_2017-02-17_207_200Legal - OtherContractual obligations for purchases of goods or services included in Other purchase obligations and commitments in the preceding table include agreements that are enforceable and legally binding on Intel and that specify all significant terms, including fixed or minimum quantities to be purchased fixed, minimum, or variable price provisions and the approximate timing of the transaction.
- intc_10k_2017-02-17_101_291Financial - IncomeThe operating income for the IOTG operating segment increased
- intc_10k_2017-02-17_165_336Other - Otherlower due to bonus depreciation on capital assets placed in service, as well as timing of certain tax payments and refunds.
- intc_10k_2017-02-17_73_266Financial - ExpenseLower CCG platform unit cost
- intc_10k_2017-02-17_213_216Other - OtherThe obligation to pay the relevant taxing authority is excluded from the preceding table, as the amount is contingent upon continued employment.
- intc_10k_2017-02-17_177_154Financial - Debt2015, primarily due to lower proceeds from debt issuances and the repayment of $1.5 billion of debt in 2016.
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- Form Type: Annual
- Number of times amended: 0
- Accession Number: 0000050863-17-000012
- Submitted to the SEC: Friday, February 17, 2017
- Accepted by the SEC: Friday, February 17, 2017
- Period Ending: December 2016
$35.16 -0.11 (-0.31%)
$35.12 to $35.73
$29.50 to $38.45
Earnings per Share:
PEG / Short / PE Ratios:
1.53 / 3.55 / 16.58
$35.12 to $35.73
$29.50 to $38.45
Earnings per Share:
PEG / Short / PE Ratios:
1.53 / 3.55 / 16.58